What Does Missouri's New Gold and Silver Bill Propose?
Missouri's legislature has made a significant move toward financial freedom by passing the Constitutional Money Act, which would designate gold and silver as legal tender within the state. As of May 2025, this legislation has successfully cleared both chambers of the Missouri General Assembly as an amendment to a broader finance-related bill. The measure now sits on Governor Mike Parson's desk awaiting his signature to become law.
The bill represents one of the most comprehensive precious metals monetary reforms in any state since Utah's pioneering legislation in 2011. If enacted, it would create a parallel monetary system that allows Missourians to conduct transactions in gold and silver alongside the U.S. dollar.
Key Provisions of the Legislation
At its core, the Constitutional Money Act would require state government entities—including the Missouri Tax Office—to accept electronic versions of gold and silver (known as "electronic specie currency") as forms of payment for taxes, fees, and other obligations to the state.
Unlike earlier drafts that were more expansive in scope, the final version of the bill does not mandate that private businesses accept gold and silver payments. Instead, it gives them the legal option to do so if they choose, removing any potential legal barriers to accepting precious metals as payment.
"This is giving citizens another option," explained former Senator Bill Eigel, a key proponent of the legislation. "The dollar is being inflated and abused by our friends in Washington, D.C., and this bill restores economic freedom to Missourians."
The bill also provides legal clarity by defining what constitutes acceptable forms of gold and silver currency, including physical coins, bars, and electronic payment systems backed by precious metals holdings.
Why Is Missouri Considering Gold and Silver as Legal Tender?
The push for gold and silver as legal tender in Missouri stems from growing concerns about inflation and the declining purchasing power of the U.S. dollar. According to Federal Reserve historical data, the dollar has lost approximately 97-98% of its purchasing power since 1913, when the Federal Reserve was established.
"What cost $1 in 1913 would cost over $30 today," notes the Missouri Freedom Initiative, one of the primary advocacy groups behind the legislation. "Meanwhile, gold has risen from $35 per ounce in 1971 to approximately $3,300 today, preserving and even increasing purchasing power."
Economic Concerns Driving the Legislation
The timing of Missouri's legislation coincides with a period of economic uncertainty. With inflation rates in Missouri reaching 3.9% in 2024 (slightly above the national average of 3.4%), many citizens have expressed concern about protecting their savings and purchasing power.
Proponents view precious metals as a natural hedge against continued inflation and federal monetary policies that they believe contribute to currency devaluation. Gold's annualized return of approximately 7% since 1971 has outpaced inflation in many years, according to data from the World Gold Council.
"Gold is insurance against monetary collapse," argues Lynette Zang of ITM Trading, a perspective shared by many supporters of the Missouri legislation.
Political Support and Opposition
The bill has received strong backing from the Missouri Freedom Initiative and members of the Missouri Freedom Caucus, who have championed it as a way to restore economic freedom and financial sovereignty to Missouri residents.
Representative Bryan Spencer, a Republican supporter of the bill, stated during House debates: "This legislation restores economic freedom against federal overreach and gives Missourians options beyond a constantly devaluing dollar."
Critics, primarily Democratic lawmakers, have questioned the practicality of implementing such a system. Senator John Rizzo asked during floor debates, "Are businesses going to give me back money in gold? How would that even work?" Representative Kemp Strickler similarly expressed concerns that "implementation will be a huge challenge for businesses," particularly small enterprises with limited resources.
The Missouri Chamber of Commerce has also raised concerns, stating that "complex tax reporting requirements will burden small businesses" if they choose to accept precious metals payments.
How Would Gold and Silver Payments Actually Work?
Despite critics' concerns about the logistics of using precious metals for everyday transactions, several practical options exist for gold and silver payments that address issues like making change and handling small purchases.
Practical Payment Methods
The legislation accommodates multiple forms of gold and silver payment methods:
-
Fractional gold pieces: Smaller denominations like 1/10 oz gold coins (worth approximately $330 at current prices) allow for more practical transactions than full ounce coins
-
GoldBacks: These innovative gold notes contain 1/1000 oz of gold (worth about $3.30) in usable denominations, making small transactions feasible
-
Constitutional silver: Pre-1965 U.S. coins (dimes, quarters, half dollars) with 90% silver content provide natural denominations—a Mercury dime contains roughly 1/10 oz of silver
-
Electronic gold/silver accounts: Debit cards backed by precious metals holdings allow for precise payment amounts without physical metals changing hands
-
Digital gold currencies: Electronic payment systems based on allocated gold enable transactions down to 0.001 grams of gold
"Our notes enable seamless small transactions without the complications of traditional bullion," explains Jeremy Cordon, CEO of Goldback Inc., whose company produces the gold-infused polymer notes already used in several states including Utah and Nevada.
Verification and Authentication
Modern precious metals include sophisticated anti-counterfeiting features that make them difficult to fake. GoldBacks, for example, incorporate holograms, microprinting, and verifiable serial numbers that can be authenticated with simple tools.
For electronic precious metals payments, verification happens at the system level, eliminating the need for physical authentication at the point of sale. Apps like "Vaulted" enable real-time conversion to USD at the point-of-sale, making transactions as seamless as credit card payments.
Wyoming's "Sound Money Reserve" program offers a model for tax payments in gold, demonstrating that state-level implementation is feasible with modern technology and proper protocols.
Businesses accepting gold and silver would typically set prices in dollars and convert to precious metals at the point of sale based on current market values. This approach eliminates the need for dual pricing systems while still enabling metals-based transactions.
What Are the Potential Benefits of Gold and Silver as Legal Tender?
Inflation Protection
Perhaps the most compelling argument for gold and silver as legal tender is their historical track record of maintaining purchasing power over long periods, unlike fiat currencies that tend to lose value over time.
While the U.S. dollar has lost 97-98% of its purchasing power since 1913, an ounce of gold buys approximately the same amount of goods today as it did a century ago. During periods of high inflation, such as the 1970s, gold price forecast models showed that precious metals significantly outperformed traditional currency and many other asset classes.
"The primary purpose of holding precious metals isn't speculation—it's preservation of purchasing power when central banks engage in expansionary monetary policy," explains Dr. Richard Werner, banking and monetary economics professor.
For Missourians concerned about rising prices, the legislation offers a potential safeguard against further erosion of their savings' value.
Financial Sovereignty
Supporters argue that having alternative forms of money gives citizens more control over their financial resources and reduces dependence on centralized monetary systems.
"When citizens have options beyond a single currency controlled by central authorities, they gain a measure of financial sovereignty," notes the Missouri Freedom Initiative in their advocacy materials for the legislation.
This aspect has particular appeal in Missouri, where polling suggests a strong cultural emphasis on self-reliance and limited government intervention in financial affairs.
The portfolio diversification benefit is also significant. According to the Journal of Portfolio Management, precious metals typically show negative correlation to equities during financial crises, potentially offering protection when traditional investments struggle.
Constitutional Alignment
Advocates point to Article 1, Section 10 of the U.S. Constitution, which states that "No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts," suggesting that the legislation aligns with the founders' vision for sound money.
This constitutional argument resonates strongly among supporters, who view the legislation as a return to monetary principles established at the nation's founding rather than a novel innovation.
The trend toward precious metals-friendly legislation is not limited to Missouri. Currently, 42 states have eliminated sales taxes on precious metals, recognizing their monetary rather than retail nature.
What Challenges Could Implementation Face?
Despite the potential benefits, Missouri's gold and silver legal tender legislation faces several practical challenges that could impact its effectiveness and adoption.
Business Adoption Hurdles
Private businesses may be hesitant to accept gold and silver due to several concerns:
-
Price volatility: Silver's price fluctuated 30% in 2023 alone, creating potential accounting and pricing challenges
-
Employee training requirements: Staff would need education on handling and verifying precious metals
-
Need for specialized equipment: Point-of-sale integration could cost small and medium enterprises $500–$1,000 per month according to National Retail Federation estimates
-
Accounting and tax reporting complexities: IRS guidelines require documenting transactions in U.S. dollar equivalents
The Missouri Chamber of Commerce has expressed particular concern about these implementation costs, noting that many small businesses operate on thin margins and may not have resources to implement new payment systems.
Consumer Education Gaps
Most consumers are unfamiliar with using precious metals as currency, creating a potential barrier to widespread adoption. A 2023 survey by the Sound Money Defense League found that while 72% of Americans express concern about inflation, only 18% have ever conducted a transaction using precious metals.
Public education would be necessary for successful implementation, requiring resources that the legislation does not specifically allocate.
Practical Transaction Issues
Questions remain about how businesses would handle:
-
Providing change for precious metals payments: Would businesses need to stock both precious metals and U.S. dollars?
-
Setting prices in dual currencies: How frequently would metal-denominated prices need updating?
-
Managing inventory of physical gold and silver: Security concerns and storage requirements
-
Integrating with existing point-of-sale systems: Most current systems are not designed to handle precious metals transactions
"The biggest challenge isn't the concept, but the infrastructure," notes payment systems analyst James Rickards. "We need a transition period where both systems—electronic and physical—can work seamlessly together."
How Does Missouri's Legislation Compare to Other States?
Missouri's effort to recognize gold and silver as legal tender joins a growing movement across the United States to restore precious metals to their monetary role.
Precedent in Other States
Utah became the first state to legalize gold and silver as legal tender in 2011, providing a model for Missouri's legislation. Utah's law led to increased bullion dealer registrations—up 300% by 2023 according to the Utah State Auditor Report.
Texas took a different but complementary approach by launching a state gold depository in 2018, providing secure storage for precious metals owned by state entities and citizens.
According to the Sound Money Defense League, 12 states now have some form of legal tender laws for precious metals, while 18 have exempted gold and silver from sales taxes—recognizing their monetary rather than retail nature.
Wyoming's "Sound Money Reserve" program for tax payments in gold has created a working model that Missouri legislators have studied closely during the drafting process.
Regional Differences in Approach
The movement toward gold and silver as legal tender has gained more traction in politically conservative states, though interest in precious metals as inflation protection crosses political lines.
States with significant mining operations, such as Nevada, have shown particular interest in precious metals legislation, partly due to the economic benefits for local industry.
Northeastern states have generally been more hesitant, though New Jersey broke this pattern by removing taxes on precious metals transactions in 2022, indicating that monetary metal reforms are not exclusively a regional phenomenon.
What Are the Broader Implications for the U.S. Monetary System?
Missouri's legislation, while focused on state-level changes, reflects and contributes to broader conversations about monetary systems and alternatives.
Growing Interest in Alternative Currencies
The push for gold and silver as legal tender exists alongside rising interest in other alternative monetary systems, including cryptocurrencies and central bank digital currencies (CBDCs).
This diversification of currency options represents what some economists call "monetary pluralism"—the coexistence of multiple forms of money with different characteristics serving different purposes.
The World Gold Council reports that central banks globally purchased 1,136 tons of gold in 2023, the highest level in decades, suggesting that even at the institutional level, there is growing interest in precious metals as a monetary anchor.
Potential Impact on Federal Monetary Policy
While state-level legal tender laws cannot replace federal currency, they may influence national conversations about monetary policy and potentially create pressure for monetary reforms at the federal level.
If enough states adopt similar legislation, it could create a parallel monetary ecosystem that functions alongside the Federal Reserve Note system, potentially influencing federal policy decisions through market competition.
The Federal Reserve has not issued formal responses to state-level precious metals initiatives, but economists note that widespread adoption could eventually necessitate policy accommodations.
FAQs About Gold and Silver as Legal Tender in Missouri
Would businesses be required to accept gold and silver?
No, the current version of the Missouri bill would not require private businesses to accept gold or silver. It simply gives them the legal option to do so if they choose. Only state government entities would be required to accept electronic precious metals payments.
How would taxes be calculated when using gold and silver?
For tax purposes, transactions would need to be recorded in U.S. dollar terms based on the spot price of precious metals at the time of transaction. The IRS requires that capital gains on precious metals be tracked and reported, which means businesses would need to maintain records of both the metal weight and the dollar value of each transaction.
Could this legislation affect the value of the U.S. dollar?
State-level legal tender laws are unlikely to have significant direct effects on the dollar's value in the near term. However, widespread adoption across multiple states could potentially influence monetary policy discussions and market perceptions over time.
How would consumers know the current value of their gold and silver?
Modern technology makes it easy to check current precious metals prices via smartphone apps, websites, or electronic payment systems that automatically calculate current values. Most digital precious metals platforms update prices in real-time based on gold-silver ratio insights and global market rates.
Would this create a two-tier pricing system in Missouri?
Businesses accepting both dollars and precious metals would likely price goods in dollars and convert to precious metals at the point of sale based on current market values, rather than maintaining separate price lists. This approach, already used in Utah and Nevada, minimizes confusion while enabling metals-based transactions.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. The monetary landscape in Missouri is evolving, and specific implementation details may change pending final legislation and regulatory guidance. Readers should consult with financial and legal professionals before making decisions based on the information presented.
Those looking to take advantage of this legislative change might want to familiarize themselves with various gold investment strategies and potentially explore undervalued gold stocks as part of a diversified portfolio approach.
Looking for the Next Major Mineral Discovery?
Discover actionable investment opportunities as they happen with Discovery Alert's proprietary Discovery IQ model, which delivers real-time notifications of significant ASX mineral discoveries before the broader market reacts. Explore why historic discoveries can generate substantial returns by visiting Discovery Alert's dedicated discoveries page and begin your 30-day free trial today.
